A downward sloping demand curve can be explained by I. diminishing marginal utility II. diminishing marginal returns III. the substitution effect IV. the income effect
A. I only
B. II only
C. I and III only
D. I and IV only
E. I, III and IV only
E. I, III and IV only
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Suppose that the interest rate paid to savers increases. As a result, Tom wishes to save more. This suggests that, for Tom,
A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) utility maximization is not occurring. D) future consumption is a luxury.
What is a labor union?
a. a group of workers that forms a collective to assume ownership of a company b. a governing board that oversees hiring and promotions at large manufacturers c. a partnership between the owners of the means of production and the workers d. a workers’ organization formed to negotiate fair pay and safer working conditions
The principal way in which an economy self-corrects from an inflationary gap is through
A. deflation, which increases purchasing power. B. inflation, which reduces purchasing power. C. disinflation, which maintains purchasing power. D. price level decreases, which stimulate production.
Refer to Exhibit 2-1. The movement from point A to point B is a movement from
 ANSWER 3.png)